Time to switch to a Flat Tax for U.S. Income Taxes?
As Ben Franklin famously said, the only two sure things in life are "Death and Taxes". Americans pay many different kinds of taxes to all levels of government: Local, State, and Federal. April 15th is income tax day (April 18th this year) when Americans are required to file their income taxes, and it is often stressful because it is complicated. Some people need to pay taxes at this time. Others, depending on their withholding and deductions end up getting a refund. A number of candidates- most notably Ted Cruz are suggesting that the current system be replaced with a flat tax to both make things more simple and more fair, and to generate more income for the Federal government.
A Flat Tax would set a % of income that everyone would be required to pay with no deductions. 10% or 15% have been suggested. The percentage would be the same regardless of income.
A Progressive tax charges a greater % to higher incomes in the interest of "fairness" but also- under the current system allows for "deductions" for specific spending and investments that can reduce an individuals tax responsibilities.
People have also suggested that Federal income taxes be replaced by a National Sales Tax.
Here are some links to check out. What do you think? You might ask your tax paying parents what they think.
Time to switch to a Flat Tax for U.S. Income Taxes?
As Ben Franklin famously said, the only two sure things in life are "Death and Taxes". Americans pay many different kinds of taxes to all levels of government: Local, State, and Federal. April 15th is income tax day (April 18th this year) when Americans are required to file their income taxes, and it is often stressful because it is complicated. Some people need to pay taxes at this time. Others, depending on their withholding and deductions end up getting a refund. A number of candidates- most notably Ted Cruz are suggesting that the current system be replaced with a flat tax to both make things more simple and more fair, and to generate more income for the Federal government.
A Flat Tax would set a % of income that everyone would be required to pay with no deductions. 10% or 15% have been suggested. The percentage would be the same regardless of income.
A Progressive tax charges a greater % to higher incomes in the interest of "fairness" but also- under the current system allows for "deductions" for specific spending and investments that can reduce an individuals tax responsibilities.
People have also suggested that Federal income taxes be replaced by a National Sales Tax.
Here are some links to check out. What do you think? You might ask your tax paying parents what they think.
U.S. News and World Debate- Is the Flat Tax a Good Idea?
The Ted Cruz Flat Tax Plan
Tax Policy Center Briefing Book (Click on Chapters to get to all kinds of articles about different taxes and reform ideas)